GB3070 Economics of the Global Defense Environment

This course introduces you to economics as a social science and teaches you the tools of micro-economic analysis that are necessary to understand and conduct economic policy analyses. One of the key tools of economic analysis is Cost-Benefit Analysis (CBA). You will learn the utility as well as the challenges of using CBA to study the role of the public sector in our market economy. After a brief introduction to CBA, which includes motivating the need for conducting CBA in the public sector, we study the fundamental tools of microeconomics, including supply and demand, elasticity, market equilibrium, social welfare, the effects of government interventions in the economy, and how firms make decisions in competitive and non-competitive markets. We then turn to the study of how to conduct CBA and how to be critical consumers of such analyses.

Prerequisite

MA2XXX College Algebra or equivalent

Lecture Hours

4

Lab Hours

0

Quarter Offered

  • As Required

Outcomes

  1. Given a cost-benefit analysis in an academic setting, the student will evaluate the rationale for government intervention in the market.
  2. Given a scenario in an academic setting, the student will correctly apply the economic way of thinking to analyze the effects of price controls, taxes, and subsidies on market outcomes.
  3. Given a scenario in an academic setting, the student will correctly apply the concept of market efficiency and correctly describe when and how government intervention can improve market efficiency.
  4. Given a scenario in an academic setting, the student will correctly articulate how competition influences firm behavior.
  5. Given a cost-benefit analysis of a public policy, the student will evaluate the analysis in terms of its soundness, validity, and limitations.